OMVIC Code of Ethics Scenarios Flashcards

A salesperson discovers partway through a deal that the vehicle the consumer selected has outstanding finance owing that has not been cleared. The salesperson decides to complete the deal and handle the lien payoff afterward without telling the consumer. This is:

Answer: Unethical because consumers are entitled to know about existing liens before committing to a purchase

Consumers have the right to know about encumbrances on a vehicle before they commit; proceeding without disclosure deprives the consumer of the ability to make an informed decision.

A registered dealer lists a vehicle for $24,000 on their website. When a buyer arrives and negotiates, the dealer insists the price is $26,800, claiming the website price was a 'typo.' Under the OMVIC Code of Ethics:

Answer: Advertising a price and then refusing to honor it is deceptive and inconsistent with honest dealing

OMVIC advertising standards require all-in price transparency; repeatedly using 'typo' claims to bait-and-switch consumers is deceptive conduct under the Code of Ethics.

A registered salesperson is asked by their manager to witness a customer's signature on a contract but the customer was not actually present. The salesperson signs as witness. This conduct:

Answer: Violates the Code of Ethics and potentially constitutes fraud or forgery

Falsely witnessing a signature is dishonest conduct and potentially fraud; it violates the Code of Ethics' fundamental requirement of honesty.

A consumer who has purchased a vehicle under a conditional sale agreement (subject to financing approval) is told three days later that financing was not approved. The dealer, rather than unwinding the deal as required, pressures the consumer to find alternative financing within 24 hours or lose their deposit. This conduct:

Answer: Violates the Code of Ethics by using pressure tactics and attempting to retain a deposit when the sale condition failed

When a sale condition such as financing approval is not met, the deal is void and the deposit must be returned; pressure tactics to circumvent this violate fair dealing under the Code.

Two competing registered dealerships coordinate their pricing through a trade association meeting to keep used car prices artificially high. This conduct:

Answer: Violates competition law and is contrary to the Code of Ethics' requirement for fair and honest dealing

Coordinating prices with competitors harms consumers and violates both competition law and the Code of Ethics' commitment to fair, transparent, and honest dealing.

A consumer signs a purchase agreement with a dealer. Later that day, the consumer calls to cancel, saying they changed their mind. The salesperson correctly advises that there is no general cooling-off right for used vehicle sales. However, the salesperson also refuses to allow the consumer to speak with the principal dealer or review their consumer rights documentation. This refusal:

Answer: Violates the Code of Ethics by denying the consumer access to information about their rights and recourse

The Code of Ethics requires registrants to be responsive and transparent with consumers; denying a consumer the ability to understand their rights or escalate their concern is a breach of professionalism.

A recently registered salesperson realizes that during their first week on the job, they were coached to use several sales tactics that may be deceptive. They are concerned but do not yet know if the tactics violate the Code. The appropriate first step is:

Answer: Consult OMVIC's published Code of Ethics and consider contacting OMVIC for guidance before continuing the practices

Each registrant is personally responsible for their conduct from day one; seeking guidance from OMVIC proactively is the appropriate and ethical response to uncertainty about compliance.